PSX falls over 2,300 points as investors turn cautious amid political noise

Profit by Pakistan Today reported that the Pakistan Stock Exchange slid sharply on Monday, with the KSE-100 index at one point more than 2,300 points lower in intraday trading. The reporting pointed to home-grown political uncertainty, tensions in the region and costly energy as factors weighing on sentiment. The index opened weaker, dropped over 1,200 points in the first minutes, and sank further after midday to touch an intraday low of 165,766.79.

The index stood at 165,891.20 at 12:50 pm, down 2,264.29 points or 1.35 per cent from the prior close. Analysts attributed the drop to domestic political uncertainty and elevated international oil prices, which raised worries about inflation and the wider economic outlook. One analyst said the market direction would hinge on global oil prices and on whether political noise eases at home.

Losses were widespread, reaching refineries, power producers, oil marketers, banks, cement makers, carmakers and oil explorers. Over the previous week the index shed 2,610 points, or 1.5 per cent, to close at 168,155, and average daily volume dropped 45 per cent to 647 million shares. In its weekly review, AKD Securities said stronger economic data might help the stock market, while the forthcoming IMF review stays a key near-term event.